Which of the following provides life insurance coverage for a specific period?

Study for the PSI Insurance Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Term life insurance is designed specifically to provide coverage for a predetermined period, typically ranging from one to thirty years. This type of insurance pays a death benefit to the beneficiary if the insured person passes away during the contract term. If the insured survives the term, no benefit is paid out, and the policy typically expires without any cash value accumulation.

In contrast, whole life insurance, universal life insurance, and variable life insurance are types of permanent insurance. These policies provide coverage for the entire lifetime of the insured, as long as the premiums are paid. They also include a cash value component that can accumulate over time, which is not a feature of term life insurance. Therefore, term life insurance is the correct answer as it is the only option that explicitly pertains to coverage for a defined and limited duration.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy